Graduates’ job priorities changing from just paycheck size

“Back when I was in college …” is a familiar phrase most parents reflect upon when talking about job prospects for today’s college graduates. With May being popular for college commencements, this generation of young adults is shifting their priorities in moving from campus to career.

CNBC reported this April the top five considerations for recent graduates in choosing a profession: familiar location (73 percent); job stability (70 percent); positive employer reputation (67 percent); high starting salary (63 percent); and flexible work schedule (52 percent).

These statistics are from a survey of the class of 2025 graduates conducted by Handshake, an online career platform.

Location is the number one factor, replacing top salaries from prior years. More than half of recent graduates apply to jobs within 250 miles of their college. Less than 10 percent apply to jobs that are more than 2,800 miles from home.

CNBC explains that new graduates prioritize having a work-life balance that includes a supportive community, family and friends around them. Some new graduates prefer not taking a dream job in a pricey city to working closer to home with more affordable rent and everyday costs. Recent graduates feel the cost of living is an important consideration because many have student loans and limited job opportunities.

Second, job stability is a real concern. There is a shift away from careers that were previously considered as more “job secure,“ such as working in government agencies and non-profits that have experienced staffing and budget cuts. There is increased interest in law, politics, real estate and construction because these sectors are perceived as stable industries.

For example, this March, the Wall Street Journal reported a 20.5 percent increase in law school applications to nearly 200 law schools. The University of Michigan Law School had their largest number of applicants in its 166-year history. Georgetown University Law Center received 14,000 applications for 650 spots.

Third, recent graduates prefer working in organizations with a positive reputation. Applicants can research online company feedback from current and prior employees. Websites such as Glassdoor, ZipRecruiter, LinkedIn Job Search and Indeed Hiring Platform include information on the interview process, salary ranges and work environment.

However, nearly 40 percent of employers reported that they avoid hiring recent college graduates, according to a December 2023 survey of 800 U.S. directors and executives responsible for filling job openings.

Employer surveys reveal that many recent graduates fail to hold eye contact during interviews and have unrealistic salary expectations. Being unprepared or unenthused can create doubt about being a team player or having a desire to build skills.

Fourth, a higher starting salary is no longer the top priority as tech jobs become less attainable. The LinkedIn article, “The Era of High-Paying Tech Jobs Is Over,” explains the shift away from mind-boggling tech salaries. Layoffs and hiring freezes are more common and even expected.

Many tech companies are maximizing profitability with less workers. Google announced in February layoffs to “operate more efficiently” and “remove layers” in its businesses. Trends include less new employee hiring, more in-office work requirements and increased use of artificial intelligence.

Tech companies have been backing off from remote work that was essential during the pandemic. This April, Fortune reported that Google is requiring some remote workers to move within 50 miles of an office and work there for up to three days a week or risk losing their jobs.

The fifth priority is having a flexible work schedule. The U.S. Department of Labor explains work flexibility as not working within the traditional 9-5 hours of the 40-hour week. This allows employees to vary their arrival and departure times and be present during a daily “core time” according to some policies.

In February 2024, Forbes explained that many employers believe that working in the office fosters employee engagement and group collaboration, which can be missing with online work. Interacting in the same space and spontaneously brainstorming new ideas can foster a proud and shared brand identity.

Recent graduates who attended school and worked remotely during the pandemic can be more comfortable in working independently online, with teams and with personal time management. The debate about the trade-offs with remote work and being in the office is shaping how people build careers.

Commencement means new beginnings. Defining work for the next generation requires flexibility during uncertainty. Today, career choices have more considerations than just a big paycheck.

(Margo Bartsch founded College Essay Coach, a full-service college admission business, and has been an adjunct professor in business at Champlain College and at Middlebury College.)